Highlights: MCC Proposed Budget for Fiscal Year 2015 (7/1/14 7/30/15)

Transcription

1 Highlights: MCC Proposed Budget for Fiscal Year 2015 (7/1/14 7/30/15) Prepared for MCC Governing Board Finance Committee Meeting of the Whole Monday, Sept. 16, 2013 at 7:30 p.m. 1

2 FY 15 Budget Process In June of 2013, a Planning Meeting with focus on THREE PILLARS of the Center was held. The Budget Process involved the Board and Staff working together in setting the THREE PILLARS Internal Alignment, External Alignment and FINANCIAL STEWARDSHIP. 1. Internal Alignment: A series of one-on-one meetings between Executive Director, Comptroller, and Senior Staff rigorously reviewing costs, modeled off of FY 13 costs, which were lower than the current FY 14. This was conducted from mid-june through the end of August External Alignment: The Center will practice transparency by posting FY 15 budget plans on the Center s Website well in advance of the work session and public hearing. 1. Financial Stewardship: Staff has committed to Performance Dashboard and Quarterly Budget Reviews with full Board throughout fiscal year. 2

3 Tax Rate & Tax Revenue FY FY 2015 Tax Rate Tax Revenues ($mils) The tax rate : From was 3.0c per $100. From c per $100. From it was 2.8c per $100 of assessed value. The tax revenue dollars shown are in Real 2012 $. Financial Years Historical Data provided by Paul Kohlenberger. 3

4 6 5 FY 2015 Budget Overview $5.01 $ $4.08 $3.80 $3.75 $3.62 $3.78 $ $ $ Tax Rate & Tax Revenue & Operating Surplus-Shortfall FY FY 2015 Tax Rate Tax Revenues in Mils. Operating Surplus-Shortfall $ $0.443 $ $ $ $0.658 Historical Data provided by Paul Kohlenberger. Financial Years 4

5 Revenue and Expenditures from 1976 thru 2014 Historical Data provided by Paul Kohlenberger. 5

6 McLean Community Center Option Option Financial Summary FY FY 2015 A B Preliminary Projections FY 2013 FY 2014 FY 2014 FY 2015 FY 2015 Actual Adopted Revised Budget Budget Tax Rate per $100 of Assessed Value c c c c c Beginning MCC General Fund Balance 12,095,768 10,464,114 11,740,084 9,853,491 9,853,491 Total Revenue 4,819,286 5,021,281 5,086,882 5,156,887 5,333,259 Total Operating Expenditures (4,889,787) (5,513,249) (5,745,379) (5,402,075) (5,402,075) Net Surplus (Loss) from Operations for Financial Yr (70,501) (491,968) (658,497) (245,189) (68,816) Less :Capital Expenses (285,183) (301,500) (1,228,096) (804,739) (804,739) Net Surplus/(Loss) for Financial Year(incl. Capitals) (355,684) (793,468) (1,886,593) (1,049,927) (873,555) MCC General Fund Balance(incl. Capital Exp) 11,740,084 9,670,646 9,853,491 8,803,564 8,979,936 MCC General Fund Balance 11,740,084 9,670,646 9,853,491 8,803,564 8,979,936 Capital Replacement Reserve Fund 1,007, , , , ,649 Annual Additions to Capital Replacement 200, ,000 Ending Balance Capital Reserve Fund 1,007, , , , ,649 Ending Balance in Capital Improvement Reserve Fund 8,574,193 7,828,850 7,753,850 7,069,111 7,069,111 Adjustment for Suplus / (Shortfall) 4 (178,197) (1,824) Ending Balance in Technology Fund 200,000 Operating Contingency Reserve- Effective ,250,000 1,250,000 1,250,000 1,250,000 Total Reserves 9,781,619 9,661,499 9,586,499 8,803,563 8,979,936 Unreserved Ending Balance-Surplus/(Shortfall)-Gen Fnd 3 1,958,465 9, ,

7 McLean Community Center Option Option Financial Summary FY FY 2015 A B Preliminary Projections FY 2013 FY 2014 FY 2014 FY 2015 FY 2015 Actual Adopted Revised Budget Budget Tax Rate per $100 of Assessed Value c c c c c REVENUE Real Estate Tax 1 3,615,668 3,718,108 3,783,709 3,880,194 4,056,566 Interest on Investments 39,226 40,217 40,217 42,000 42,000 Total Tax and Interest Revenue 3,654,894 3,758,325 3,823,926 3,922,194 4,098,566 Instructional Programs 528, , , , ,000 Special Events 89, , ,350 94,720 94,720 Performing Arts 91, , , , ,416 Youth 195, , , , ,000 Teen Center 24, , , , ,400 Visual Arts 157, , , , ,000 Total Program Revenue 1,087,191 1,197,656 1,197,656 1,152,536 1,152,536 Miscellaneous (Facility Rentals, Ad Revenue, etc.) 77,201 65,300 65,300 82,157 82,157 TOTAL REVENUE 4,819,286 5,021,281 5,086,882 5,156,887 5,333,259 Revenue Increase Year over Year EXPENDITURES Administrative Services 849, , , , ,499 Facilities Services 2 687, , , , ,909 Public Information 319, , , , ,937 Support Expenditures 1,857,221 2,018,217 2,236,604 1,936,345 1,936,345 Instructional Programs 698, , , , ,051 Special Events 391, , , , ,275 Performing Arts 884,778 1,131,664 1,144,656 1,171,420 1,171,420 Youth 455, , , , ,860 Teen Center 448, , , , ,124 Visual Arts 153, , , , ,000 Program Expenditures 3,032,566 3,495,032 3,508,775 3,465,730 3,465,730 Program + Support Expenditures 4,889,787 5,513,249 5,745,379 5,402,075 5,402,075 Capital Expenditures (Capital Replacement & Improvements) 285, ,500 1,228, , ,739 Total Program Expenditures 5,174,970 5,814,749 6,973,475 6,206,814 6,206,814 Personnel Expenses 2,755,077 2,988,123 2,988,123 2,954,883 2,954,883 Operating Expenses 2,134,710 2,525,126 2,757,256 2,447,193 2,447,193 FY 14 Revised reflects the county published projections. No changes have been shown to reflect Capital Expenses. 1. FY 14 Revised Real Estate Taxes Include the Projected Increased of the Assessed Value. 2. FY 14 Revised Facilites Includes the cost of the Capital Project for the Theatre Roof Fire Protection- $156K. Will be moved to Capital Expenses upon Completion. 3. FY 15 General Fund Shortfall, after deducting Capital Expenses from Appropriate Capital Funds. Please see details of expenses in Capital Expenses attachment 4. Effective FY 15 the Suplus/shortfall is being adjusted in the Capital Reserves. 7

8 Project # Project Description Total Expensed 2012-C-04 HVAC Booths - Theatre -HVAC (Ph1, 2 &3 -Design) CR $7,621 $7,621 Proj Expenses 2012-C-04 HVAC Booths - Theatre Phase(1-Installation ) CR $48,785 $33,887 $14, C-01 Restrooms + ADA Restrooms CR $496,000 $3,338 $492, C-02 Community Hall Partitions CR $96,467 $96, C-04 OFTC Awning CR $12,000 $3,693 $8, C-05 Alden Theatre Sound System CR $205,426 $3,444 $201, C-07 McLean Community Center Capital Improvement Plans Drainage-Relocate Utility Cables, Prepare Storm Water Drainage and Landscaping 1 CI $121,381 $16,473 $104, C-08 Theatre Scene Shop Office+Ladder CI $65,000 $22,751 $42,249 Proj Expenses Proj Expenses Proj Expenses Proj Expenses Proj Expenses Proj Expenses 2013-C-09 Light Console - Shown in Facilities - In Facilities as Computer Supplies ER $42,334 $42, C-10 Rear Projection Screen - Shown in Facilities as Computer Supplies ER $6,500 $6, C-11 Video Projector - Shown in Facilities as Computer Supplies ER $15,000 $15, C-12 OFTC AV / BOOTH - Video CI $23,539 $23, E-01 Enviornmental Study - MCC Asbestos Study CI $5,529 $5, E-03 Theatre Booth - HVAC Administration Cost CR $4,740 $4, E-04 Dish Machine ER $4,743 $4, R-2 SWSG Study - ADA Compliance CI $4,956 $4,956 Alden Theatre Roof Fire Proofing 2 CR $164,000 $164,000 Total Value of Projects - FY 13 $1,324, C-01 Stove Top Burner ER $7,500 $7, C-01 Ice Machine ER $3, C-01 OFTC Roof CR $120,000 $120, C-02 OFTC Restrooms ADA CI $30,000 $30, C-03 MCC Carpet CR $100,000 $15,000 $85, C-01 Theatre Stage Speakers ER $26,000 $26, C-05 Wireless Stage Intercom ER $14,000 $14, C-04 HVAC Balcony Phase(2 - Installation)-2012 Estimates $150,000 $150,000 0 Signage Estimates $175,000 $175, C-01 Rehersal Hall - Wood Flooring - Quotes being obtained- Estimates CR $35,000 $35,000 $660,906 MCC RENOVATION 2013-R-1 SWSG Study - MCC Renovation CI $50,806 $50, R-1 FFX DPWES-BDCD Architects Fees CI $497,359 $25,666 $76,910 $68,599 $91,028 $91,028 $91,028 $53, R-1 Architects - Design Fees-FY14 CI $571,829 $50,000 $521, R-1 Easement CI $6,000 $6, R-1 Inspection / Plan Review CI $45,000 $45, R-1 Asbestos & Misc. CI $35,000 $35, R-1 CI $0 1. Budget Increased due to revised quotes from Vendors-From $112K to $121K 2. Shown as Operating Expenses in FY 14 Encumbrances * The project costs shown above are based on best estimates received at the current time. $285,393 $1,381,006 $804,739 $393,599 $91,028 $91,028 $91,028 $53,100 8

9 FY 2015 Budget Overview Total Budget Expenditures: Total Budget Revenues: FY 15 Estimated Shortfall from Operations: Total Budget Expenditures: Total Budget Revenues: FY 15 Estimated Shortfall from Operations: 2.3c/$100 Capital Expenses are projected to be $804,739, please see attachment for details. Proposed Tax Rate: 2.2 per $100 of Assessed Value OR $2.3 per $100 of Assessed Value, to be determined after Sept. 16 work session. By comparison, the Reston Community Center's current tax rate is 4.7 per $100 of Assesses Value. 9

10 4,500,000 FY 2015 Budget and 2.2c/$100 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Real Estate Tax-Current Art Activity Fees Recreation Class Fees Special Event Fees Theatre Admissions 2.3c per $ c per $100 Youth Program Fees Misc Charge for Svcs-Perf Arts Rentals Interest Real Estate Tax is the ONLY revenues source to be affected by the tax rate change. 10

11 FY 2015 Budget Operating Expenditures Expenditure 45% Compensation 40% Benefits 15% Expenditures are the same in both scenarios 11

12 FY 2015 Revenues & 2.3c/$100 Assessed Value 160, , , ,051 94, , ,416 1,171, , ,984 9,960 72,197 42,000 FY 15 Program Revenues & Expenses FY 15 Revenues RE per $100 FY 15 Exp. Including Compensation & Benefits 4,056,566 3,880,194 Real Estate Art Activity Tax-Current Fees Recreation Class Fees Special Event Fees Theatre Admissions Youth Program Fees Misc Charge for Svcs Rent on Real Estate Interest Real Estate Tax is the ONLY revenues source to be affected by the tax rate change. 12

13 FY 2015 Budget Expenditures FY 15 expenses have been projected based on FY 13 Actuals. FY 15 - The Alden Theatre is projecting an increased Media and Advertising Budget to increase the visibility and presence in the community. In FY 15, a Headliner Event has been included, which was not done in FY 13. Programs (2) have been realigned between The Teen Center and the Youth Activities departments to provide better supervision and management in FY

14 FY 2015 Budget Revenues Three Components making up the Revenues: Taxes projected at 2.3c per $100 $4,056,566 76% Taxes Projected at 2.2c per $100 $3,880,194 75% Program and Rental Revenues $1,234,693 23% Program and Rental Revenues $1,234,693 24% Interest Income $42,000 1% All revenue amounts are projections based on assumptions for FY 15 (July 2014 June 2015) Programs. This is a Draft of the FY15 Budget 14

15 FY 2015 Budget Taxes Tax Revenues = Total Tax Assessment of Properties in MCC Tax District multiplied by tax rate. Example: For a house assessed at $1,000,000, MCC tax assessment at 2.3 per $100 would be $230. The tax assessment at 2.2 per $100 would be $220. MCC uses tax assessment projections for FY 2015 provided by the County. Actual Assessments for FY 2015 will not be announced until early 2014 (for first 6 months of FY 2015) and early 2015 (for final 6 months of FY 2015). As a result, at this time, tax revenue for FY 2015 is a projection. 15

16 Looking Forward The 2.3 tax rate, at tax assessment levels currently projected by the county, results in operating expenditures> revenues by $68,816 for FY15. The 2.2 tax rate, will result in operating expenditures > revenues by $245,189 for FY15. For operating expenditures to equal Revenues for FY 2015, the tax rate needs to be at ~2.4. Once excess reserves are utilized through major capital projects, MCC may need to increase tax rates so that expenditures will equal revenues. This decision will be influenced by many variables, especially changes in assessed value of property in MCC tax district in FY 2015 and beyond. 16

17 Park & Recreation Jurisdiction Survey Dec Park and Recreation Jurisdiction Survey Dec 2012 What is your organization's FY 2013 Total Gen Fund/Tax dollar Operating Budget (Excludes Capital) What % of your FY 2013 tax supported budget is PERSONNEL EXPENSE What % of your FY 2013 tax supported budget is OPERATING EXPENSE Arlington $ 32,681, % 29.00% Reston Association $ 6,831, % 45.00% Reston Community Center* $ 8,277, % 39.00% Loudoun County $ 36,136, % 22.00% Vienna $ 2,737, % 30.00% Prince William $ 29,825, % 46.00% City of Fairfax $ 3,705, % 47.00% City of Leesburg $ 7,355, % 25.00% NVRPA $ 20,415, % 33.00% Fauquier County $ 3,369, % 42.00% Herndon** $ 4,025, % 30.00% Fairfax County Park Authority $ 30,006, % 40.00% City of Alexandria $ 20,339, % 26.00% McLean Community Center $ 5,466, % 47.00% NVRPA totals include all jurisdictions served Statistics provided by Park & Recreation Survey